ETHAN ALLEN INTERIORS INC New Standards Disclosure

Recent Accounting Pronouncements

 

The Company evaluates all Accounting Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board (“FASB”) for consideration of their applicability to our consolidated financial statements.

 

New Accounting Standards or Updates Adopted in Fiscal 2025 

 

Segment Reporting. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires all public entities to provide enhanced disclosures about significant segment expenses. We adopted ASU 2023-07 for the fiscal year ended June 30, 2025 and have applied it retrospectively to all prior periods presented in our consolidated financial statements, which did not result in a change to our current or previously reported financial results. Refer to Note 20, Segment Information, in the accompanying notes to the consolidated statements for further detail.

 

Recent Accounting Standards or Updates Not Yet Effective 

 

Income Taxes. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which enhances transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid. This ASU will be effective for us beginning with annual disclosures in fiscal 2026 and then interim periods beginning in fiscal 2027. We expect the adoption of this accounting standard will modify our income tax disclosures, but we do not expect it to have a material impact on our consolidated financial statements.

 

Disaggregation of Income Statement Expenses. In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This ASU requires disaggregation of certain income statement expense captions into specified categories to be disclosed within the notes to the financial statements but does not change the expense captions on the income statement. The amendments in this ASU are to be applied prospectively, although retrospective application is permitted, and is effective for our annual financial statements starting in fiscal 2028 with interim periods starting in fiscal 2029, with early adoption permitted. We are currently evaluating the impact that this accounting standard will have on our consolidated financial statements and related notes.

 

No other new accounting pronouncements issued or effective as of June 30, 2025 have had or are expected to have a material impact on our consolidated financial statements and related disclosures.